Use the information concerning Sharp Screen Films, Inc., provided in Problem 12-1 to fulfill the following requirements.

Question:

Use the information concerning Sharp Screen Films, Inc., provided in Problem 12-1 to fulfill the following requirements.
Required:
1. Prepare the statement of cash flows using the direct method for the year ended December 31, current year.
2. Based on the cash flow statement, write a short paragraph explaining the major sources and uses of cash by Sharp Screen Films during the current year.